High Yield Bonds

Alamo Capital has specialized in High Yield bond investing since 1987. We have an in-house High Yield bond trading desk that is focused in maintaining a competitive bond inventory. We are able to provide our investors access to the primary and secondary High Yield bond market.

What Are High Yield Bonds?

High yield bonds are issued by a corporation or municipality that a major bond rating agency deem to be at a higher risk of default than investment grade bonds. Usually this is because of capital strain, high expenditures, volatile market conditions or other factors that may restrain or affect cash flow.

High yield bonds typically pay a high yield to compensate for the risk the investor takes when buying them.

High yield bonds are more risky, they also have the potential to add more return and often have higher coupons so the investor earns more interest income, thus high yield bonds can be attractive for an investor willing to take risk.